January 5, 2024Anmol Nagpal

UK clothing retailer Next ups profit outlook after strong Christmas

British clothing retailer Next on Thursday raised its profit forecast for the year to end-January 2024 for the fifth time in eight months as it reported a better-than-expected rise in Christmas sales.

Source: X Photo

The group, which trades from about 460 stores in the UK and Ireland and has an online presence in over 70 countries.

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Britain's shoppers have been hit by a rise in borrowing costs which stand at a 15-year high and by rapid inflation which dropped below 4% in the latest data.

Source: X Photo

Next said full-price sales rose 5.7% in the nine weeks to Dec. 30.

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Sales in stores rose 0.6% Y-o-Y, while online sales were up 9.1%, benefiting from service improvements.

Source: X Photo

It said it now expected pretax profit before exceptional items for the year to January 2024 of 905 million pounds ($1.15 billion), above previous guidance of 885 million and the 870.4 million it made

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The group also gave guidance for its 2024/25 year, forecasting a rise in full-price sales up 2.5%, total group sales up 6.0% and profit up 5% to 960 million pounds.

Source: Instagram

Shares in Next have risen by 36% over the last year.

Source: winter clothes